Weir Group (WEGRY) AI Stock Analysis

• Market Cap: $7.36B
• Dividend Yield: 1.44%
• Average Volume (3M): 12.26K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.95
• Revenue Growth: -2.27%
• EPS Growth: 41.26%
• Country: US
• Employees: 11,444
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial - Machinery
• EPS (TTM): 0.77
• Shares Outstanding: 519,224,100
• 10 Day Avg. Volume: 4,052
• 30 Day Avg. Volume: 12,263
• PEG Ratio: 0.45
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.41
• Price to Cash Flow (P/CF): 25.00
• P/FCF Ratio: 26.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Weir Group's overall stock score reflects solid financial performance with strong profitability and cash flow management. The company benefits from efficient operations and a healthy balance sheet, though it faces potential revenue challenges due to cyclical demand. Technical analysis suggests potential upside, while the valuation appears reasonable. Despite a lack of significant corporate events or earnings call details, the company's core financial strengths support a favorable stock outlook.

Weir Group Business Overview & Revenue Model

Company Description

The Weir Group PLC is a global engineering company headquartered in Glasgow, Scotland. The company operates in the minerals, oil and gas, and power sectors, providing highly engineered products and services that improve the efficiency of its customers' operations. Weir Group specializes in the design, manufacture, and supply of equipment for mining, mineral processing, power generation, and oil and gas extraction. Core products include pumps, valves, crushers, and other related machinery, which are critical to the infrastructure and operations of its clients worldwide.

How the Company Makes Money

Weir Group generates revenue primarily through the sale of its engineering products and services across its key sectors: minerals, oil and gas, and power. In the minerals sector, the company earns money by providing equipment and aftermarket support that enhance productivity and reduce costs for mining operations. The oil and gas sector contributes to revenue through the supply of pressure pumping and pressure control equipment, which is essential for efficient resource extraction. Additionally, Weir Group offers aftermarket services such as maintenance, repair, and parts replacement, which provide a steady stream of income. Strategic partnerships and long-term contracts with major industry players further bolster the company's earnings. The Group's focus on innovation and sustainable solutions also positions it favorably in markets seeking to improve operational efficiency and environmental compliance.

Weir Group Financial Statement Overview

Summary

Weir Group shows strong financial performance with consistent revenue growth, solid profitability, and efficient cash flow management. The company maintains a balanced capital structure with moderate leverage and healthy equity levels. While the financials are generally positive, there is potential for further enhancement in profit margins and reduction of debt to strengthen the financial position.

Income Statement

The company's revenue has grown steadily over the years, with a revenue growth rate of 6.62% from 2022 to 2023. Gross profit margin is solid at 37.75% in 2023, indicating effective cost management. Net profit margin improved slightly to 8.65%, reflecting enhanced profitability. EBIT and EBITDA margins are robust at 13.98% and 18.57%, respectively, showing strong operational efficiency. Overall, the income statement reflects consistent growth and profitability, but there is room for further improvement in margins.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.83, suggesting moderate leverage. The equity ratio stands at 43.40%, which indicates a healthy capital structure with a significant proportion of assets financed by equity. Return on equity is decent at 13.49%, highlighting effective use of equity capital. The balance sheet shows a strong equity position but could benefit from further reduction in debt levels.

Cash Flow

The company exhibits strong cash flow management with a free cash flow growth rate of 19.20% from 2022 to 2023. Operating cash flow to net income ratio is 1.73, indicating efficient conversion of earnings into cash. Free cash flow to net income ratio is high at 1.35, reflecting substantial cash generation relative to net income. The cash flow statement demonstrates robust liquidity and capability to fund operations and investments.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.54B	2.64B	2.47B	1.93B	1.96B	2.66B
	Gross Profit
975.90M	994.90M	873.90M	692.00M	692.90M	874.20M
	EBIT
418.50M	368.40M	307.50M	256.60M	234.30M	267.60M
	EBITDA
506.50M	489.50M	422.80M	361.90M	372.60M	416.40M
	Net Income Common Stockholders
218.80M	227.90M	213.40M	155.10M	138.60M	-353.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
263.00M	707.20M	691.20M	564.40M	351.70M	273.80M
	Total Assets
4.74B	3.89B	4.06B	3.50B	3.56B	3.85B
	Total Debt
1.40B	1.40B	1.49B	1.34B	1.36B	1.43B
	Net Debt
1.14B	690.10M	797.20M	771.80M	1.01B	1.16B
	Total Liabilities
2.60B	2.19B	2.32B	2.04B	2.24B	2.34B
	Stockholders Equity
2.14B	1.69B	1.73B	1.44B	1.31B	1.51B
Cash Flow		Free Cash Flow
319.00M	307.60M	258.10M	103.30M	194.50M	146.90M
	Operating Cash Flow
394.80M	394.30M	320.80M	156.10M	273.40M	263.50M
	Investing Cash Flow
-74.60M	-70.60M	-68.30M	195.20M	-70.80M	146.50M
	Financing Cash Flow
-336.90M	-322.50M	-303.80M	-217.30M	-85.40M	-394.60M

Weir Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEGRY, the sentiment is Positive. The current price of 14.38 is above the 20-day moving average (MA) of 14.23, below the 50-day MA of 14.65, and above the 200-day MA of 13.71, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 82.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEGRY.

Weir Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEGRY	78 Outperform	$7.36B	18.57	18.09%	1.44%	-2.27%	41.26%
SPXC	78 Outperform	$5.80B	28.95	15.65%	―	13.94%	37.49%
ITT	73 Outperform	$10.50B	20.58	19.60%	1.01%	10.59%	27.04%
FLS	70 Neutral	$5.48B	19.50	14.34%	2.08%	5.49%	51.02%
GNRC	66 Neutral	$6.60B	20.39	13.46%	―	6.79%	64.30%
RRX	66 Neutral	$6.71B	34.40	3.11%	1.38%	-3.47%	―
Sector *	63 Neutral	$4.14B	11.23	5.47%	215.40%	4.10%	-8.63%